Explain the Decision Making Process with Example of Your Own

Topics: Decision making, Decision theory, Decision making software Pages: 16 (4381 words) Published: March 23, 2013


Decision making is an integral part of the most of the top manager's duties. Not even a single day passes without taking decisions particularly in modern organisations. Hence, management and decision­ making are considered as inseparable. In fact, whatever a manager does, he can do it only by taking some decision. All matters related to planning, organization, staffing, directing and controlling are engrossed in decision making process. That is why it is aptly pointed out that management is essentially a decision-making process. The survival and future success of any enterprise is directly related to the ability to take timely and appropriate decision by the executives. Thus decision-making is said to be the heart of management.

Lot of planning exercise is to be initiated by the manager before taking any viable decision. The manager has to carefully plan and decide what to do or what not to do. Wrong decisions quite often are proved to be either costly or futile. To prevent such losses, decision-making process remains to be the core are in all planned activities of the modern corporations.

"The selection from among alternatives of a course of action", according to this definition, picking one course of action among alternatives available is termed as decision-making as per Koontz and Weinrich. In the words of George Terry,"decision-making is the selection of a particular course of action, based on some criteria, from two or more possible alternatives." We can define this concept also as the process of choosing between various alternatives for achieving a specified goal. Every decision must take into consideration needs and future uncertainties. As per Herbert Simon there are three major steps in the decision making process.

Decision making is about choosing from several options or ideas and taking action to generate a particular result. It is usually considered to be a rational and logical thinking process.

J>Recognition and understanding of the problem.
J>Various alternatives may be developed.
J>careful assessment of alternatives available for taking a better decisions.


J>Decision making is a continuous process.
J>The question of decision-making process must always be rational when there are alternatives. J>A decision-making process must always be rational and purposeful. J>Decision making is an intellectual process supported by good reasoning and sound judgment. J>Decision making is all pervasive in the sense that all levels of managers need to take decisions of varied nature. J>Decision-making is always related to future only.

Troes of Decisions:

Managerial decision may be classified into two categories, the first category includes the typical, routine and unimportant decisions and the second category covers most important, vital and strategic decisions. Apart from decisions are taken at different levels for meeting different problems.

Oraanisational Vs Personnel Decisions:-

As explained by Chester.I.Bernard, the decisions taken by the manager in his official capacity are termed as Organisational decisions.These decisions have a direct bearing on the functioning of the firm. Decision relating to reward systems or transfer of workers can be cited as examples under this category. In contrast to this, some times, decisions may be taken by the manager in his individual capacity and such decisions are termed as personal decisions. They may partly affect the personal life and partly affect the organization. Example,decision to quit the organization comes under this category.

Routine Vs Strategic Decision:-

Routine decisions involve little risk and uncertainty. Hence, they do not call for extraordinary judgement and thinking. They are mostly related day-to-day conduct of the business...
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